Product

Product
A product can be anything that can be
offered to the market to satisfy a want
or a need.
A bundle of attributes, offering for
use/consumption by the final customer.

Products that are marketed include

Physical goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

Levels of a Product
5 basic levels
Each level adds more customer value
CORE BENEFIT
BASIC PRODUCT
EXPECTED PRODUCT
AUGUMENTED PRODUCT
POTENTIAL PRODUCT

Five Product Levels

Core benefit service or benefit (e.g., hotel guest is
buying rest and sleep)
Basic product turn core benefit into basic product (e.g.,
hotel room includes a bed, bathroom, towels, desk,
dresser, and closet)
Expected product set of attributes and conditions
buyers normally expect (e.g., clean bed, fresh towels,
working lamps)
Augmented productexceeds customer expectations
(e.g., free health spar)
Potential productall the possible augmentations and
transformations (e.g., free internet connections and use)
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

12-5

Core product
- Indicate

core benefit or service

-Explains what the buyer really buys
-Basic step in designing products
- Defines problem solving benefits/ services
that consumers seek

Basic Product
At this level, the core benefit is turned into
a basic product.
Basic step in designing products
Unbranded, plainly packaged, less
expensive

Expected product
Expected/ formal/ tangible product
-Represents basic requirements, a customer finds
essential to buy a product
-Attributes & conditions required by the customers
identified-built into products
-Includes brand name, features, design, packaging,
quality level, styling, styling, attributes, instructions
manual
-- Marketer searches for a possible differentiation
e.g. Sony camcorder ( name, parts, styling, features,
packaging deliver core benefit- convenient, high

Augmented product
Marketer prepares an augmented product
that exceeds customer expectations.
Intangible component of the product along
with formal & core components
Product built by adding consumer services
& benefits

Augmented product
Product augmentation leads the marketer to look at
the users total consumption system.
Attributes extended beyond customer expectations, includes

1. After sales services

2. Delivery points & systems
3. Installation ( bulky products)
4. Customer education & training
5. Customer complaint management
6. Payment options (high end products)
7. Replacement/return policy
8. Guarantees/ warranties
9. Toll free number, etc

-These are added intangibles looked for when

technology fails to differentiate
-Future competition will be in the
Augmented Products
-Service component is expanded that enhances
the product value

Potential
Potential/Future product
-Includes all possible improvements under given
technological, economical, competitive conditions
-Helps to attract & retain customers
-These offerings differ from 1 market to another because of
varying competitive conditions
- Driving force- to retain competitive advantage.

Types of Products
1. Consumer Products:
- Bought by final consumers for personal consumption
- Categorized as
a. Convenience products ;
- Bought frequently, immediately with minimum comparison
and buying effort.
- Are low priced
- Available in many locations
e.g. Soap, candy, newspapers, fast food

Convenience products

Consumer products

b. Shopping Product;
- Characteristically compared on the basis of suitability,
quality, price and style while selection and purchase.
- Distributed through fewer outlets
e.g. Furniture, clothing, used cars, major appliances, hotel
and airline services.

Shopping products

c. Specialty Product;
- Has unique characteristics or brand identification for which
a significant group of buyer is willing to make a special
purchase effort
- People travel even long distances to buy them
(Lamborghini)
- No comparison is involved in buying.
e.g. Specific brands, types of cars, high priced photographic
equipments, designer clothes, services of medical/ legal
specialists

d. Unsought Product;
- Consumer either does not know about/ knows about but
does not normally think of buying it.
- Require a lot of advertising, personal selling and marketing
efforts.
e.g. Life insurance, pre planned funeral services and blood
donations.

2. Industrial Products:
- Distinguished from consumer products on the basis of usage
e.g. A lawn mower.
1. Materials & parts
i. Raw materials & parts:
- Farm products, (wheat, cotton, livestock, fruits, vegetables)
- Natural products (fish, lumber, crude oils, iron ore)
ii. Manufactured materials & parts:
- component materials (iron yarn, cement, wires)
- Component parts ( small motors, tires, castings)

b. Capital items
- Aid in buyers production or operations
i. Installations:
- Major purchases (factories, offices)
- fixed equipment ( generators, elevators,
computer systems)
ii. Accessory equipments:
- Portable factory equipments and tools (hand
tools, lift trucks)
- Office equipments ( computers, fax machines, desks)

c. Supplies and Services:

- Are convenience products
i. Supplies
- Operating supplies (Lubricants, coal,
paper, pencil)
- Repair and maintenance (paint, nails,
brooms)
ii. Services
- Maintenance and repair services (window clearing,
computer repair)
- Business advisory services ( legal, management, consulting,
advertising)